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Utah Domicile

General Information

UC §59-10-136

For Utah tax purposes, a person is considered domiciled in Utah under the following conditions:

Test 1

  1. You or your spouse has claimed a child tax credit (IRC §24) for a dependent on your federal tax return, and the dependent is enrolled in a Utah public K-12 school (unless you are a noncustodial parent who is divorced from a custodial parent).
  2. You or your spouse is enrolled as a resident student in a Utah state institution of higher education.

Test 2

There is a rebuttable presumption you or your spouse is domiciled in Utah (i.e., you are domiciled in Utah unless you can prove otherwise) if either of you:

  1. claims a residential exemption for a primary residence under UC §59-2, Property Tax Act;
  2. is registered to vote in Utah; or
  3. claims Utah residency for purposes of filing your income tax return.

Test 3

Even if you or your spouse do not meet any of the conditions above, you are still domiciled in Utah if:

  1. either you or your spouse has a permanent home in Utah to which either of you returns after being absent; and
  2. you or your spouse has voluntarily settled in Utah, not for a special or temporary purpose, but with the intent of making a permanent home.

Whether or not you or your spouse has a permanent home in Utah is based on a preponderance of the evidence, taking into consideration all of the following facts and circumstances (i.e., we will weigh the following facts and circumstances to decide if you have a permanent home in Utah):

  • You or your spouse has a driver’s license in Utah.
  • You or your spouse claims a federal tax credit (IRC §24) for a dependent who is enrolled as a resident student in a Utah state institution of higher education.
  • The nature and quality of your living accommodations in Utah compared to another state.
  • You have a spouse or dependent in Utah for whom you or your spouse claims a federal tax credit under IRC §24.
  • The physical location where you or your spouse earns income.
  • The state of registration of a vehicle owned or leased by you or your spouse.
  • You or your spouse has a membership in a church, club or similar organization in Utah.
  • You or your spouse lists a Utah address on mail, a telephone listing, a listing in an official government publication, other correspondence, or similar item.
  • You or your spouse lists a Utah address on a federal or state tax return.
  • You or your spouse claims Utah residency on a document filed with or provided to a court or other governmental entity.
  • You or your spouse fails to obtain a permit or license nor- mally required of a resident in the state where you claim to have domicile.
  • You or your spouse has a dependent child who is in the custody of a former spouse and who is enrolled in a Utah public K-12 school.

Utah Residents Working Out of State for a Period of Time

Utah residents who work out of state (or out of the country) for a period of time, but are still considered domiciled in Utah, must pay Utah income tax on all income earned here and out of state.

Examples

  1. A Utah family moves to Japan for four years. They still own their house in Utah which they claim as their primary residence for Utah property tax purposes. They still owe Utah income tax on all earnings from Japan because they are still considered Utah residents for property tax purposes.
  2. An airline pilot lives for most of the year in an apartment in Florida, but his wife lives and is domiciled in Utah. They file a married-filing-joint federal income tax return. Since he has filed a joint return with a Utah resident, he is also considered a Utah resident for tax purposes and his income is subject to Utah income taxes.
  3. A student from Taiwan is attending the University of Utah and has brought her family with her. The children are attending a Utah public elementary school. Since her children are in a Utah public school, she is considered a Utah resident for tax purposes.